India Growth Outlook: India must continue on the path of soft infrastructure modernization: IMF’s Luis Breuer
“Going forward, India must continue along this path to modernize soft infrastructure, including reforming bond markets, broadening the investor base, increasing private sector participation, and strengthening public bank regulation,” said Luis E Breuer, Chief Representative for India. , International Monetary Fund (IMF).
Experts noted that the country has been able to build confidence in the stock market.
“Over the past 30 years, we have become a trustworthy nation that demonstrates the trust our investors have in our various institutions and, more importantly, our entrepreneurs. This would not have been possible without corporate governance and transparency,” said Ashishkumar Chauhan, Managing Director and CEO, National Stock Exchange.
But we also need to replicate our success in the capital markets.
“Risk aversion does not allow companies to raise funds in the bond market. It is par for the course in equity markets, but we need to take a holistic approach to bond market development,” said Rajnish Kumar, Chairman, Mastercard India and former Chairman, State Bank of India.
Experts pointed out that further reform of corporate governance is needed, especially protection of the rights of minority shareholders and financial education. “Corporate governance is not low-hanging fruit. Even small improvements can have an impact in improving board quality,” added Andrea Goldstein, Head of India/Indonesia, OECD (France) Economic Department.
Prithviraj Srinivas, Chief Group Economist, Mahindra Group, emphasized that trust will help increase financial savings.
“Working to lower the cost of doing business can help attract capital from the market. Institutionally building confidence in the inflation target and reducing the cost of doing business will benefit markets over the next 25 years,” he noted.
They also worked on stock market reforms to aid growth.
“We need to deepen liquidity, and I think it would be advantageous to have a stock loan market. There is no mechanism in the market for long puts that allows for hedging,” said Ridham Desai, managing director at Morgan Stanley.
“Among the most important drivers of economic development, a vibrant stock market is the only source of wealth creation for the common man, which has a direct impact on consumption, leading to better growth and thus completing a virtuous cycle,” Desai added. It had increased.
